1991 (8) TMI 319

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..... r various reasons stated in the assessment order. Some of the basic reasons for rejecting the accounts was that the assessee-respondent was alleged to have manufactured polythene lumps out of waste polythene bags and papers but had not maintained production-cum-stock register. The assessing authority also found that the gross profit shown by the assessee was too low. However, the assessing authori .....

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..... dition of 2 per cent as against 5 per cent to the taxable turnover for the defects found by the assessing authority would suffice. Second appeal was preferred before the Tamil Nadu Sales Tax Appellate Tribunal (Second Additional Bench), Madras. By an order dated April 2, 1982, the Tribunal upheld the contention of the assessee that assessment under section 7-A of the Act was not justified. It was .....

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..... le of those polythene bags and papers to the assessee. The question, however, arises whether the purchase turnover of waste polythene bags and papers would attract section 7-A of the Act. 3.. The assessee-respondent, as is borne out from the record, purchased waste polythene bags and papers. The same were melted into polythene lump and sold to the users of the material. By melting the waste polyt .....

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